Women and Their Finances
We are in a new era. The past is behind us all, but let's not forget it so we do not regress to our past flaws. By this, all i wish to imply is that women have stepped up their damn game, to deny that or to not embrace that reality, is at your own downfall.
Because, let’s not forget, money and financial independence is power, and women should be more ambitious to attain that freedom. After all, as a male myself, it is what drives me more than anything else to be an investor, as well as many of my fellow male friends. Even as a millennial, there is still an observable gap seen between the genders.
With that said, let's just get straight into the statistics when looking at women and their finances, for the data should provide some insight into their financial outlook and mindset.
“Two major trends are profoundly impacting women. One, women are living longer than men. Two, nearly half of marriages are likely to end in divorce, with rising rates among couples over 50.
Inevitably, many women will become widows or divorcees—and eight out of 10 women will be solely responsible for their financial well-being.Some women will be ready, and many won’t.”
61% of millennial women defer investing and financial planning to spouses, as opposed to 54% with older generations (this is regression)- according to a survey by UBS Group AG. Meanwhile The Swiss bank found that younger women are more likely than earlier generations to give such leeway to their partners, more than any other generation. The mindset flaw in this is, most women are quite content with their backseat role when it comes to investing and financial planning. To this I ask why?
When compared with men, women are much less likely to invest their savings — and as such, women miss out on significant wealth growth.
In a survey conducted from Fidelity Investments, only 29% of women said they see themselves as investors.
In another research, women are not only more likely to answer financial literacy questions incorrectly, but they also disproportionately answer those questions with “I do not know.”
A new analysis finds that women are far more likely than men to face financial hardship in retirement. A report released today by the National Institute on Retirement Security (NIRS) finds that across all age groups, women have substantially less income in retirement than men, with figures showing that women are 80% more likely to be impoverished in retirement.
More than half of divorcees and widows discover financial surprises, such as outdated wills and debts, and previous UBS research shows that 85% of couples will need long-term care during their lifetimes, with most women outliving their husbands. This can lead to women's greatest fear of becoming a burden to their children
Six in 10 widows and divorcees regret not participating more in long-term financial decisions - and they hold themselves accountable. Even women who say they were meaningfully involved wish they had done more
Ladies, you keep striving for higher levels of professionalism and status in this world, fighting for equal rights and equal opportunities...... but once you make that money and obtain that success academically or professionally, what are you doing with your money after?
Your education is progressing and surpassing that of the male counterparts, your ambition for careers are clearly visible, but your financial development seems to be falling apart. If that falls apart, then there will always exist a sense of dependence on the male partner for the most critical decisions of your lives. Worse part of that is, your male counterpart may not even be that financially literate, yet he will have more sway on the value of your dollar than yourself, simply because of that subconscious dependence on ‘your man’. You earn it, learn to keep it and make your money work for yourself also. Continue down the value chain, don't stop once you get that degree, don't stop after you establish a career, just don't stop. It's as though women lack confidence, leading them to fail at implementing a financial plan and focusing too much on cash and materials. This mindset implies that ‘your man’ will ensure when and how you retire, after all, if he has more control over the money, how can you control that outcome yourself?
Public markets are open to everyone of any gender, with advisers out there also happy to represent your own worth individually. As an investor, the markets don't care about our genders, male or female, it's all the same, so only you are holding yourself back. Go be proactive with your own money.
The reality of much of the data on poverty and widows is based on the older generations, born prior to the 80's. As such, for women born in the 80’s and after, this should not be seen as the reality of the future landscape for you guys, because the landscape is shifting, but to an extent, since millennial women are not striving down the value chain to be in control of their own money afterwards. You are an important part of the economy now, working and earning your own money, which will directly impact the future financial data more positively for the female gender, just don't forget to give yourself more worth economically. The stronger you are independently, the stronger the economy is as a whole, so, even though I am a male, i see no reason not to want to see you kill it financially.
The purpose of this was not to create a response of fear, rather to make you understand the data on the older generations, so you can aim for better. Continue to aim to fuel the financial progression of your own individual wealth, for that will create a greater separation from your male counterparts, therefore true freedom and independence. Do not regress, do not get lazy, value the worth of your dollar, and your financial future can reflect that of the male counterparts. Money provides true independence from anything or anyone, so go for it.
If you want an example of a business woman in the finance industry carving her own path, go check NewGen Mindset’s episode 4 with guest Genevieve Roch-Decter, CEO of Grit Capital. Can get some insight in the episode, so go to Spotify and search up NewGen Mindset.
More info at www.newgenmindset.com.